MVNO: What is a mobile virtual network and is it a better choice?

If you’re always on the lookout for a deal, and you’ve been thinking about whether you should switch mobile providers, there’s a chance you’ve come across a certain term while researching – MVNO.

These operators are a little different to some of the others on the market and can offer some of the best SIM-only deals going, but might leave you with questions about just how they work. If that sounds familiar, read on for some clear answers, with some insight from Voxi – one of the UK’s MVNOs – and the GSMA, the industry organisation that represents the interests of mobile network operators globally.

What is an MVNO?

It might not clear everything up, but a lot can be deduced from what those letters in the name stand for: Mobile Virtual Network Operator.

In basic terms, an MVNO is an operator that offers mobile services, generally in the form of connectivity, but doesn’t actually own or maintain the network itself – hence the ‘virtual’ part of the name.

“An MVNO is a telecom operator who does not own spectrum and offers cellular services through an agreement with MNO [Mobile Network Operators] to purchase wholesale network access”, says Radhika Gupta, head of data acquisition at GSMA.

So, they’re piggybacking on a network operated by a different organisation, and therefore don’t have to deal directly with the expense that comes with the maintenance, improvement or expansion of that network. In the UK, the four mobile network operators are EE, O2, Three and Vodafone, with each operating its own network and each mobile network operator playing host to a handful of MVNOs.

What advantages does an MVNO offer?

“From a customer appeal perspective, the main advantage of an MVNO historically has been to serve a niche segment with targeted benefits or discounts”, explains Gupta. “International roaming has been a popular benefit of MVNOs, with the ability to serve travellers with quick affordable plans – LycaMobile and Lebara are good examples of this.”

As we’ve mentioned, MVNOs get to sell deals and use the bigger operators’ networks, but because they’re free from the overheads that come with running a network, you can often find some great bargains on them. So shop around for a deal that suits your needs – whether that includes roaming abroad, or some other extra that you know you’ll definitely use – rather than just choosing a bigger package from a major network that you might get the most use out of.

If you do your research, it’s pretty easy to find out which network any given MVNO uses, so it’s still relatively easy to check its coverage before you sign up.

Are MVNOs cheaper?

For the most part, the greatest attraction of MVNOs is that they tend to be cheaper than their full network counterparts. Since this usually applies to both their phone and SIM-only deals, it means that an MVNO can be the ideal choice for students or, indeed, anyone looking to cut down their monthly bills without too much compromise.

MVNOs are often quite nimble when it comes to their benefits too, whether it’s unlimited data on social media apps, free video streaming on YouTube or other similarly enticing options.

Are MVNOs slower?

The common perception is that, because they don’t operate the network themselves, MVNOs are slower than the main networks.

In theory, an MVNO on any given network should run at exactly the same speed as a SIM from the network itself. So, for example, an MVNO SIM running on the EE network should have the same connectivity as an EE SIM.

I spoke to Voxi – a standalone MVNO owned by Vodafone – and it told me: “With Voxi you get the same experience as you do with Vodafone. So, same speeds, same coverage, same reliability, et cetera.” However, it also clarified that, in its case, “Vodafone does offer 5GSA, which isn’t something we currently offer with Voxi.” So, sometimes you won’t get the latest innovations in the first wave with an MVNO.

This gets a little more complicated where network congestion is concerned. While you should have the same speeds and signal strength most of the time, if your nearest mast is heavily congested then your MVNO might not get the same priority as a main network connection. This might come into play if you’re in a packed stadium, or on a busy commuter train, and you’re trying to use your phone, but the reality is that this is often a problem for non-MVNO connections too.

Whether you think this is a major issue might just be a matter of perspective, and how you choose to use your device.

What MVNO uses which network?

The list of MVNOs in the UK is fairly long, but these are the most well-known and which networks they use:

There are more MVNOs out there than just those listed above, but many of them are pretty small. You can generally find out which parent network they use by checking their website.

The carriers that each MVNO uses determine much of its connectivity and speed limits, so you’ll often be able to learn a lot more about the MVNO once you know which network it uses.

It’s also interesting to note that, in recent years, some networks have started setting up their own subsidiary MVNOs. For example, Voxi and Smarty are owned by Vodafone and Three, respectively. This allows the networks to focus on delivering one particular benefit, like unlimited social media in the case of Voxi, or roaming in the case of Smarty.

Do MVNOs offer eSIM?

Yes, many MVNOs offer eSIM contracts – including Giffgaff, Lyca Mobile and more – but the list is not as universal as it is for full mobile networks. So, you’ll have to check on each MVNO’s website to ascertain whether it offers eSIM.

Some of those that don’t yet have eSIM are surprising too, with both Smarty and VOXI included in that list, despite their parent companies offering eSIM to their customers directly.

Over the next few years, it is likely that eSIM will become universally supported, moving from a niche option to a much more mainstream choice.

Is an MVNO better for you?

That will very much depend on your requirements. If you’re after a particular benefit and less interested in a bundle of extras you might not even use, you might be able to save money by opting for an MVNO. Voxi is a good example of this, where social data is their focus.

There are few downsides of an MVNO too. Yes, during busy times, your data might be deprioritised compared to customers on the parent network but, unless you have a data-critical need, it might be that the savings outweigh the costs.

Certainly, with plenty of options out there, it’s worth checking if an MVNO can save you money.